TaxTMI 
TaxTMI 
2022 (8) TMI 435
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....appeal:- "a. The Appellant submits that they were preferred an appeal against the order passed by the Commissioner of Income Tax Appeals which is totally against the fact and law and liable to be set aside on the following among other grounds. b. The Appellant submits that they were assessed u/s. 143 (3) of Income Tax Act by the assessing officer for the Assessment Year 2015-16 and determined total income Rs. 23,72,065/-. The assessing officer failed to consider the contentions raised by the appellant and confirmed his proposal u/s 143(3) of IT Act. Aggrieved by that order the Appellant preferred an appeal before the commissioner of Income Tax (Appeal). The 1st Appellate Authority confirmed the assessment order in ITA No. ....
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....fficer or by 1st Appellate Authority. But it is an admitted fact that the appellant produced the records before the respective authority and hence the impugned order is liable to be set aside. d. The appellant submits that the assessing officer as well as the 1st Appellate Authority ought to have considered the appellant case with the nature of their business. The tour operators are called as an agent and they are the agents for the customers. The customers who are all wanted the assistants of the Agents paid the commissions for the services rendered to the customers. Therefore, the customers are the principles in the circumstances of the case. The appellant received the commissions for the work done on behalf of the customer passe....
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....total income of Rs.1,02,790/-. During the course of assessment proceedings, it was noticed that the assessee has incurred expenses towards air ticket and hotel expenses in cash in excess of prescribed limit u/s.40A(3) of the Income Tax Act, 1961, and accordingly, the Assessing Officer has called upon the assessee to explain why disallowances cannot be made towards expenses incurred in cash by violation of provisions of section 40A(3) of the Act. In response, the assessee submitted that it has engaged in the business of tour and travels operator has booked air ticket on behalf of its customers and such air ticket needs to be booked by paying cash to the airlines and thus, its case comes under exception as per clause (k) of Rule 6DD of the I.....
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....case of the assessee is squarely covered under exception as provided under clause (k) of Rule 6DD of I.T.Rules, 1962, because the assessee acts as an agent between customer and airlines. The learned A.R further submitted that the assessee does not incur expenditure in cash, however, it has purchased foreign currency and handed over to its customers who travel abroad as per tour itinerary and said foreign currency has been utilized to settle hotel bills in places where they stay during their journey. The Assessing Officer, without appreciating above facts, has simply made additions. 5. The learned D.R., on the other hand, submitted that there is no dispute with regard to fact that the assessee has incurred expenditure in cash for purchase....
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....ight of clause (k) of Rule 6DD of I.T. Rules, 1962, we find that the assessee has not made cash payment to his agent, who is required to make payment in cash for goods or services on behalf of the assessee, but the assessee has made direct cash payment to airlines for booking air ticket. Therefore, the assessee's case does not cover under Clause (k) of Rule 6DD of I.T. Rules, 1962. However, there is merit in arguments of the assessee that it has acted only as agent for his customers and has booked air ticket on behalf of its customers, because it is general practice in this kind of industry that tour operators will collect money from its customers and in turn, make cash payments for booking air ticket, because airlines generally does not ac....